The Graph [GRT]: Bulls head for overhead resistance, but $0.1800 is key
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- GRT was in a bullish market structure at press time.
- It could break the $0.1800 hurdle if BTC rises above $22.25k.
The Graph [GRT] built on its January rally and provided another 75% gains on 7 February, jumping from $0.1289 to above $0.2087. However, the price later corrected itself. At the time of writing, GRT had successfully recovered, having cleared some important hurdles.
However, there were still more hurdles to overcome to give the bulls more leverage.
Read The Graph’s [GRT] Price Prediction 2023-24
The obstacle at $0.1800 – Can the bulls overcome it?
In the past two weeks, GRT retested the support zone at $0.1400 twice. The retests provided buying opportunities. Although the first test ended with a stifled recovery, the press time retest could overcome resistance at $0.1616.
The 12-hour chart was bullish, as were the lower time frame charts. Therefore, the bulls could overcome the hurdle at $0.1800 and target the overhead resistance at $0.2087. However, they should overcome the $0.1865 obstacle to gain more leverage.
Thus, bears could gain more influence on the market if GRT cannot overcome $0.1800. In such a case, GRT could fall to $0.1616 or $0.1598, which would invalidate the trend described above. These levels could be used as opportunities for short-selling.
But a massive drop was highly unlikely due to macroeconomic conditions. Stocks and the U.S. equity market remained stable despite higher-than-expected inflation in January. Similarly, BTC steadied and began a recovery. If BTC holds the level above $22.25k, GRT could overcome $0.1800 and target an overhead resistance of $0.2087.
GRT’s OI and sentiment improves
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According to Santiment, the weighted sentiment recovered from the deeply negative side. This showed that GRT investors’ confidence in the assets improved. Thus, the bulls could be encouraged to overcome the hurdle of $0.1800. However, the declining demand in the derivatives market, reflected in the falling Funding Rate, could hamper the bulls’ efforts.
On a positive note, GRT’s Open Interest (OI) rate surged significantly at the time of writing. If OI increases and weighted sentiment turns positive, a convincing breakout above $0.1800 could be possible.